Getting the contract right – common FUs coming across the GTA desk

33 Starcevich Crescent, Jacka, Canberra - $360,000

Unfortunately for most buyers and sellers of grain …….

http://www.google.com.au/url?sa=i&rct=j&q=read+the+instructions&source=images&cd=&cad=rja&docid=K2BH6TMsCudUQM&tbnid=Z1Cvm6m4N9dXpM:&ved=0CAUQjRw&url=http%3A%2F%2Fwww.demotivation.us%2Fwe-usually-read-instructions-1258472.html&ei=6MTvUa77AcXjkQXph4GIDQ&bvm=bv.49641647,d.dGI&psig=AFQjCNG8jMvCKYDWDAAKf2D-5Sp9kHw18A&ust=1374754344560999

Key principles to get the contract right

Due diligence of the organisation you are selling to GTA member?

Known to you?

Unknown and $5 over market – call the police!!!!

Dealt with them before? Track record?

Peer review / references

First trade – appropriate – not substantive.

Work into a relationship

Credit insurance - it’s a given for the trade - why not growers?

Key principles to get the contract right

Record details of conversation

Understand your commitment especially with forward contracts.

Can a contract be formed over the phone?

Price basing point? Farm/silo/port?

Delivery period

Quality standards - i.e. “No 1s”

Commodity Standard Grain

Trading Standards

Wheat 26 trading standards – Commodity Standard Grain (CSG)

Barley 5 trading standards - Commodity Standard Grain (CSG)

Sorghum 4 trading standards - Commodity Standard Grain (CSG)

Oats 2 trading standards - Commodity Standard Grain (CSG)

Oilseeds 17 trading standards - Commodity Standard Oilseeds (CSO)

Pulses 59 trading standards - Commodity Standard Pulses (CSP)

http://www.google.com.au/url?sa=i&rct=j&q=show+me+the+money&source=images&cd=&cad=rja&docid=jR-kVbbXzYRTGM&tbnid=zmEf6uYJ-D3OvM:&ved=0CAUQjRw&url=http%3A%2F%2Fwww.examiner.com%2Farticle%2Fgop-will-discuss-hr-589-for-99ers-but-tell-rep-lee-to-show-me-the-money&ei=hcHvUdy0Bsb4kgWP7oDoCg&bvm=bv.49641647,d.dGI&psig=AFQjCNH_Sq8UrSvnR4Oq4GMR5HTRdOCrfA&ust=1374753523163382

Can a seller complete a contract confirmation or is it something only

the buyer can do?

Problem???? We can adopt the ostrich position. Seems to work for them

Grain Contract Risk

Are there other risks to grain contracting?

http://www.google.com.au/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http%3A%2F%2Fnolanpartners.com.au%2Fabout%2Fnews.php%3Fid%3D209&ei=4f2VVbLvI8bGmAXxkpWYAg&bvm=bv.96952980,d.dGY&psig=AFQjCNFkOMPakFbUD2c7nft4-0y5RWRwnQ&ust=1435979497430182

GM plus the new plant breeding techniques

• Zinc finger nuclease (ZFN) => ZFN-1, ZFN-2 & ZFN-3

• Oligonucleotide directed mutagenesis (ODM)

• Cisgenesis& intragenesis

• RNA-dependent DNA methylation (RdDM)

• Grafting (on GM rootstock)

• Reverse breeding

• Synthetic genomics

http://www.google.com.au/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http%3A%2F%2Fwww.abc.net.au%2Fnews%2F2014-03-13%2Fcanola-crop%2F5318106&ei=i82VVcugEoKhmgXV_r7QBA&psig=AFQjCNGQy4QZeC1ofvcOqNz5c8d10SGuDA&ust=1435967235757492

Getting the contract right – common FUs coming across the GTA desk

Thank you